Moldova faces energy strain: Legislative proposals for fuel subsidy amid market volatility
The "Alternativa" Bloc has formally requested the Moldovan Government to implement emergency measures to mitigate the impact of surging fuel prices. This comes as the country remains under a 60-day national energy alert, effective since March 4.
During a press briefing on Wednesday, March 11, MP Olga Ursu highlighted that Moldova lacks a price stabilization framework. She noted that international price fluctuations are placing direct financial pressure on both households and businesses.
Proposed fiscal relief
The opposition group proposed a temporary 50% reduction in diesel excise duties for three to six months. This measure would specifically support the agricultural sector during the critical spring planting season.
According to Ursu, this reduction would save farmers approximately €0.08 (1.7 MDL) per liter. Furthermore, the bloc suggests lowering the VAT on fuel from 20% to 12%, which could reduce pump prices by an additional €0.07 (1.52 MDL).
Government monitoring and strategic stocks
Agriculture Minister Ludmila Catlabuga stated that authorities are closely monitoring fuel supplies. While regional volatility has raised concerns about stocks, the Ministry of Energy is working to prioritize essential services and the farming sector.
The Minister urged farmers to report any unjustified refusals of fuel sales. She emphasized that the Competition Council and the National Agency for Energy Regulation (ANRE) are prepared to intervene and conduct inspections where supply irregularities occur.
Market context and price spikes
The current energy strain is attributed to regional conflicts in the Middle East and Ukraine, coupled with increased seasonal demand. These factors have driven diesel prices up by 3.6 MDL per liter in less than two weeks.
As of March 11, ANRE has set the maximum price for 95-octane gasoline at €1.28 (25.2 MDL) per liter. Standard diesel has risen to €1.23 (24.3 MDL) per liter, following a recent increase of 0.71 MDL.
Translation by Iurie Tataru
